One significant and disastrous event in your life can create financial difficulties if not outright ruin. Your car is involved in an accident, or someone suffering injuries due to a fall on your property or a family dog attack can lead to costly legal problems. Depending on the amount you owe, bills quickly amount and longtime savings are depleted, and significant assets are taken away.
Bridging a financial gap
Umbrella insurance coverage can help stave off a financial catastrophe. Policies go beyond existing insurance for a home, car, or another form of transport. Instead of being limited to the existing insurance policy, umbrella coverage bridges a financial gap, preventing the loss of valuable assets following a judgment filed against you that requires you to pay for medical bills and your legal defense.
Those who enjoy significant wealth are often the target of lawsuits, whether the claims are legitimate or an easy “money-grab.” With a higher likelihood of legal action, umbrella coverage can help preserve their largess should an accident occur that includes:
- Drowning or near-drowning in a private swimming pool
- Large animals such as horses roaming the property
- A mishap that arises at a sizably attended party
- Injuries to household staff under your employ
- Pain and suffering
Umbrella policies are not all-encompassing. Certain things are not covered and include:
- Damaged personal assets
- Business losses
- Criminal acts
- Intentional acts that result in injuries
- Communicable diseases
Liability insurance only goes so far. For some, the coverage will suffice. For others, particularly those targeted as having more to lose, umbrella policies can mean the difference between financial stability and outright ruin.